Electricity Facility Expects to Begin Construction in 2013
CALGARY, May 17, 2012 /CNW/ - EmberClear Corp. (TSXV: EMB) ("EmberClear") plans to increase the power generation at the Good Spring Power Plant ("Good Spring Power"), in Schuylkill County, Pennsylvania from 270 MW to 300 MW. The 300 MW Natural Gas Combined Cycle ("NGCC") power plant is a variation of the previously announced 270 MW advanced coal Integrated Gasification Combined Cycle ("IGCC") power plant, named Good Spring IGCC. This change results from the recent emergence of favourably priced long-term contracts for natural gas. EmberClear plans to enter a long-term natural gas contract to supply Good Spring NGCC in the coming months. Other implications for this decision include:
- Natural Gas Fuel Source - Good Spring Power has been permitted to generate electricity from syngas and natural gas. Originally, syngas would have been created with coal gasification technology as the primary fuel with natural gas as a backup fuel source. However, improving availability and economics of domestic natural gas enables the project to use natural gas as the primary fuel source. This modification lowers the project complexity, reduces the capital cost by at least 60% and accelerates the construction schedule;
- Accelerating Time to Construction - The lack of regulatory clarity on emissions for coal-based electricity plants plus the immediate availability of natural gas provides a strong incentive to use natural gas as the primary fuel source. EmberClear has begun the contract and financial closing activities to prepare for construction in 2013; and
- Choice of Feedstock for the Future - Use of either coal or natural gas as a feedstock is highly dependent on the differential between either one of these fuel sources with respect to the price of electricity. As contract prices for both coal and natural gas have been historically volatile, EmberClear has the option to use either fuel source. If the future regulatory environment and economics make the IGCC power plant a better solution, EmberClear has the ability to build an IGCC plant.
"The price difference between wholesale electricity and natural gas has grown substantially in the last few months," said Albert Lin, CEO EmberClear. "With long-term contracts for natural gas being so competitively priced, a compelling opportunity to quickly move into contracting and construction with higher than historical returns presents itself. We intend to capitalize on this market condition."
About EmberClear
EmberClear is an advanced energy development company focused on low emission energy projects around the world. EmberClear aims to accelerate the adoption of technologies enabling improvements in the efficiency and cleanliness of fossil fuel consumption. This objective is partially enabled through a license to thermal chemistry technologies developed, over the last two decades, by the Huaneng Clean Energy Research Institute (HCERI), a subsidiary of the world's largest power company, Huaneng Power Group of China. EmberClear also holds surface and mineral rights in Schuylkill County, Pennsylvania. This property lies in the Southern Anthracite coalfield of eastern Pennsylvania, USA and is a small portion of the Valley and Ridge physiographic province of the Appalachian Highlands. EmberClear's shares are listed on the TSX Venture Exchange under the trading symbol "EMB". For more information, please visit www.emberclear.com.
Forward-Looking Statement Disclaimer
Certain statements contained in this document constitute forward-looking statements or information (collectively "forward-looking statements") within the meaning of applicable securities legislation. Forward-looking statements are typically identified by words such as "anticipate", "continue", "estimate", "expect", "forecast", "may", "will", "project", "could", "plan", "intend", "should", "believe", "outlook", "potential", "target", "seek", "budget", "predict", "might" and similar words suggesting future events or future performance. All statements other than statements of historical fact may be forward-looking statements. In particular, this document contains forward-looking statements pertaining to, without limitation, the following: statements about our intention and ability to construct and operate a Natural Gas Combined Cycle Power plant. With respect to forward-looking statements contained in this document, we have made assumptions regarding, among other things, the following: the economic viability of an NGCC project, the long term natural gas contract prices, construction rates, warranties, and availability and energy needs. Although we believe that the expectations reflected in the forward-looking statements contained in this document, and the assumptions on which such forward-looking statements are made, are reasonable, there can be no assurance that such expectations will prove to be correct. Readers are cautioned not to place undue reliance on forward-looking statements included in this document, as there can be no assurance that the plans, intentions or expectations upon which the forward-looking statements are based will occur. By their nature, forward-looking statements involve numerous assumptions, known and unknown risks and uncertainties that contribute to the possibility that the predictions, forecasts, projections and other forward-looking statements will not occur, which may cause our actual performance and financial results in future periods to differ materially from any estimates or projections of future performance or results expressed or implied by such forward-looking statements. These risks and uncertainties include, among other things, the following: the volatility of feedstock and offtake and the possibility that EmberClear will not have the financial or other resources to develop, construct or operate such plant or other project. Readers are cautioned that this list of risk factors should not be construed as exhaustive. The forward-looking statements contained in this document speak only as of the date of this document. Except as expressly required by applicable securities laws, we do not undertake any obligation to publicly update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. The forward-looking statements contained in this document are expressly qualified by this cautionary statement.
Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.
© 2012 EmberClear Corp.
All rights reserved. All other trademarks are the property of their respective owners.
David G. Anderson
CFO
Tel: +1 (403) 264-8817
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